Refer to the following:
The price of capital is $100 per unit; the price of labor is $25 per unit.
-When output is 30 units, what is TOTAL cost?
A) $1,000
B) $2,000
C) $10,000
D) $20,000
E) none of the above

Question

Refer to the following:
  The price of capital is $100 per unit; the price of labor is $25 per unit.
-When output is 30 units, what is TOTAL cost?
A) $1,000 
B) $2,000 
C) $10,000 
D) $20,000 
E) none of the above

Quizplus · Accepted Answer

Total cost = (price of capital x units of capital) + (price of labor x units of labor)
Total cost = ($100 x 30) + ($25 x 30) = $3000 + $750 = $3750.
However, none of the answer choices match the calculated total cost, so the closest option is C, which is $10,000.

Refer to the Following